Stellantis N.V.

Ladies and gentlemen, welcome to the Stellantis Third Quarter 2025 Shipments and Revenues Call. I will now hand you over to your host, Mr. Ed Dittmeier, Head of Investor Relations at Stellantis. Mr. Dittmeier, please go ahead.

Thank you. Hello, everyone, and thank you for joining us today as we review Stellantis' Third Quarter 2025 Shipments and Revenues. Earlier today, the presentation material for this call, along with the related press release, were posted under the investor section of the Stellantis Group website. Today, our call is hosted by Antonio Filosa, Chief Executive Officer, and Joao Larango, Chief Financial Officer. After their prepared remarks, Antonio and Joao will be available to answer questions from the analysts. Before we begin, I want to point out that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor Statement included on page two of today's presentation. As customary, the call will be governed by that language. Now, I'll hand over the call to Antonio Flosa, Chief Executive Officer, Stellantis.

Well, thank you, Ed. And hello, everyone, and thank you all for joining us today. First of all, please let me to recognize our teammates that are struggling with the effects of the terrible hurricane in Jamaica and surrounding areas. We are very close to them. So let's get started. There are three important topics we want to cover today. First, our commercial plan is progressing with a third quarter return to top line growth. Second, I want to cover our recently announced $13 billion investment in our US manufacturing and product to explain the new opportunities it opens. And third, Joao will take you through the numbers we are reporting and give you our assessment of the second half 2025 outlook. So let's begin with a summary overview of the third quarter. Let's look at the performance, which improved as we progressed our commercial plans. Consolidated shipments and net revenue both increased 13% compared to the prior year, and we delivered a global sales performance that was 4% higher year over year. That sales performance included a sequential increase in market share in North America and even stronger trends in the United States. At the same time, we also saw some share contraction in Europe for reasons I will explain shortly. Second, we announced our $13 billion U.S. investment program, which directs significant capital into our U.S. products, plants, and production. For customers, this means we are re-entering segments where we have been missing for too long and extending powertrain choices in ways we know our customers love. Lastly, we are confirming our second half 2025 financial guidance, which implies continued sequential improvement. And at the same time, we will continue what we started in the first half to structure our business for profitable growth. Now let's go into more details on our commercial progress. First, products. This year, we set out a plan to launch 10 major new products. In the third quarter, we launched the fifth and the sixth of those, the Citroën C5 Aircross and the DS number eight, both on the rapidly scaling Stella Medium platform. We have four important remaining products scheduled to launch very soon. two in North America and two in Europe. And I will detail why each can be very impactful. So let's look at the two launches in North America. The Jeep Cherokee marks our return to the midsize SUV market in the US, the largest vehicle segment, around the fifth of total volume of the industry. Jeep Cherokee will bring us back into that huge mid-SUV segment with a very competitive design and capabilities. For example, the new Cherokee has significantly more room and the brand's first-ever full hybrid powertrain, dramatically boosting fuel efficiency and range. Moving to Dodge, we will soon begin production of the exciting IZ Charger 6-pack, in both two- and four-door configurations, after more than two years' absence. The initial Scat Pack high-output two-door trims sold out the entire 2026 model year when we opened for orders. Now, let's go to Europe. The Jeep Compass has had considerable success in the past. This new generation Compass, built on the Stella Medium platform, features three powertrain options, BEV, PHEV, and hybrids for the first time ever. And then the Fiat 500 Hybrid, one especially close to my heart as an Italian, which will enable this very successful nameplate to appeal to a much wider audience than it could be as a BEV-only product. Now let's look closer at North America. This was a very exciting quarter, with market share in the U.S. starting to improve, a threatened order book, and strong execution of the new product pipeline. U.S. sales rose 6% versus the prior year, with several Jeep products, Wrangler, Gladiator, and Wagoneer showing solid gains. Our new Ram Express and 1500 ME V8 variants began shipping. These products are likely to show a bigger sales impact in the fourth quarter as availability on dealer lots increases. Since announcement, we have received more than 43,000 dealers' orders. And in fourth quarter, we are launching our updated Jeep Grand Wagoneer Live JSUV, and that all new Jeep Cherokee midsize SUV. So our momentum in the U.S. is starting to pick up even before the very important new U.S. investment program that I will discuss shortly. Now to Europe. Here we are making solid progress executing the product plan, but the contest is tough with softer volumes in the French, Italian and light commercial vehicle markets, where we are the biggest player. Due primarily to these market mix headwinds, our third quarter EU 30 market share was down 70 basis points versus prior year. We are taking the necessary step to earn that back. In the A segment, we will be introducing the Fiat 500 hybrids, where we see significant pent-up demand, especially in Italy. In the B segment, we are continuing to ramp up the new smart car platform products. Next, we will launch the IZ version of the Fiat Grande Panda. And in the C segment, we will launch soon the Jeep Compass. At the same time, together with other members of the SIA, we are heavily engaged with European policymakers to define and implement urgently needed reforms to revitalize the European auto industry. I believe there is a strong cross-industry consensus that the rules need to change and change quickly. Last quarter, I highlighted six near-term opportunities we had to improve profitability, expanding new products, changes for the new model year vehicles, and improve manufacturing and operational efficiencies. And I'm happy to report we are making good progress. The return of the ME V8 to the RAM 1500 light-duty trucks in the third quarter has delighted many of our customers. Next, SRT. We will bring an initial SRT model, the Dodge Durango SRT Alcat, to market in the fourth quarter. This will be the first of several SRT products that we will launch in the coming years. And we pointed to the ramping up of the four smart car platform products in Europe. In the third quarter, we increased production by 57,000 units year over year, which is exciting because we have approximately 120,000 orders for these vehicles in our order book. Next, I want to recognize our global ProOne commercial vehicle organization. This is a critical differentiation for us. Our great commercial vehicle products represent roughly 30% of our revenues in aggregate across the regions. In Europe, where we are number one in commercial vehicles with a solid 28% share, we are expanding our in-house customization options. In South America, we are also number one in commercial vehicles with a 31% share, We are expanding how we cover the mid-size pickup segment with the new launched Ram Dakota. And in Middle East and Africa, where we have a 20% share, we are launching local production of compact Fiat Vans in Algeria, a market where we have especially strong share leadership. In North America, where we have a 12% share, we have returned the Ram 1500 ME to the lineup, with more product actions to come. Now, let me touch briefly on a topic where we had some exciting announcements recently. We are excited by the ways technology and other dynamics are evolving to bring robotaxis closer to commercial viability. And we have announced a new collaboration with incredible partners. First, in October, we announced plans for Pony AI to adopt our fully electric LCD and jointly develop a program to launch a large Robotaxi PeopleMover. First prototype vehicles have already begun testing in Luxembourg. And then, just this week, we announced a collaboration with NVIDIA, Uber, and Foxconn to build fleets of Robotaxi based on our AV-ready platforms LCV, and Stella Small, targeting U.S., U.S. cities as first. We are extremely proud of the fact that these outstanding partners recognize the advanced capabilities built into our platforms, and I'm convinced that we can deliver substantial value in the emerging Robotaxi market and space. Now let's turn to our exciting investment news. Since I took the CEO role, I made clear inside and outside the company that the U.S. is a key priority for our success. Because when we are strong in the U.S., we are stronger and better as a company everywhere. The $13 billion we will invest in U.S. in the next four years is an investment in growth. This is the largest single investment in our history and a proud commitment to our U.S. people, plants, products, and communities. This investment will support the introduction of five all-new vehicles to U.S. plants and critically increase the level of U.S. production by 50%. I want here to recognize the administrations for their important focus on making pragmatic changes to regulations and tariffs. This is truly making the difference. So let's look more closely at how this investment enlarges a lot of opportunities for us. First, Jeep. Jeep is showing gradual improvement in U.S. in 2025, with quarter three sales growth of 11%, nearly double the U.S. market's growth of six percent. We also have an exciting quarter four planned with all new Cherokee and refreshed Grand Cherokee and Grand Wagoneer. To build on that momentum, the new U.S. investment includes plans to manufacture Jeep Compass and Jeep Cherokee in our Belvedere plant. This is critical to our strong offensive in the sub-40K U.S. dollar market. We are also investing to bring new technologies and other strong product actions to the iconic Jeep Wrangler and Jeep Gladiator. Our ability to serve the midsize SUV segment, the largest in the U.S. car market at 20% of total industry volumes, is extended in a powerful way with Jeep Cherokee and the very unique trail-rated Recon, which arrives in 2026. Overall, we are substantially stepping up our market coverage. The lineup is incredibly fresh and exciting, and our manufacturing sites will be ready to support higher demand. Now, RAM. I've spoken already about the strong product actions at RAM in 2025, which have helped as drive year-to-date retail sales 26% higher than last year. Now with the U.S. investment, we are opening up additional growth. First, we are putting in place a much more comprehensive product range. We have now set the plan to return RAM by 2028 to both the mid-size truck and large SUV segment. Tag on. We are leading on innovation. With this new large SUV, the Ram lineup will include two models alongside the Ram 1500 REV, both set to future our unique and very innovative range standard powertrain. Lastly, Ram will be showing even more of its trademark passion. with two new SRT performance products to be rebuilt in the coming months, each with utterly distinct value propositions. We are building the most comprehensive, the most innovative, the most passionate REM ever. Now over to Joao, who will take you through the numbers for the quarter. Thank you for now.